Pension Fund Investment in REITs Soars 418% to ₦77.8bn in H1 2025
Pension fund investments in Real Estate Investment Trusts (REITs) surged to ₦77.8 billion in the first half of 2025, a massive 417.8% jump from ₦15.03 billion in the same period last year, according to new data from the National Pension Commission (PenCom). The spike reflects growing interest among Pension Fund Administrators (PFAs) in REITs, even as their direct real estate investments fell by 7.4% to ₦255.9 billion from ₦276.4 billion in H1 2024. Analysts attribute the decline to PFAs’ low risk appetite for non-corporate real estate portfolios, citing challenges such as arbitrary revocation of Certificates of Occupancy by state governments and regulatory bottlenecks. REITs—introduced by the Securities and Exchange Commission (SEC) in 2007—allow investors to pool funds to buy and manage income-generating properties or mortgage loans. They provide access to real estate returns without the complexities of direct property management. […]